Answer:
Answer explained below
Explanation:
decrease in consumer surplus = 0.5(initial number of bottles - final number)*(final price-initial price) + (final price-initial price)*(final number)
where initial number of bottles = 25
final number of bottles = 15
initial price = $390
final price = $390
substituting these values, we have
- decrease in consumer surplus = 0.5(25-15)(450-390) + (450-390)15 = 1200
Consumer surplus decreases by 1200
- Consumers will buy the good as long as marginal benefit is greater than or equal price.
Thus quantity demanded will be 2 from the table
Consumer surplus = 240- market price = 240 -220= 20
Consumers total benefit = 220*quantity demanded = 220*2= 440
Answer:
Real GDP per capita can increase or decrease when Real GDP increases
Explanation:
Real GDP per capita is calculated by dividing Real GDP by the number of people in a country. Therefore:
- If population increase more quickly than the increase in real GDP, then real GDP per capita would decrease.
- If population decreases, stays the same or increases more slowly as Real GDP increases, then real GDP per capita would increase.
The contribution margin is the difference between sales volume and variable costs.
Or to put it another way: the contribution margin is the profits of a company, without considering the fixed costs.
We have then:
MC = $ 120 -60 $ = $ 60
Answer:
the contribution margin per unit is $ 60
Answer:
$6.7 per direct labor hour
Explanation:
Given:
Direct labor-hours = 20,000
Fixed manufacturing overhead cost = $94,000
variable manufacturing overhead = $2.00 per direct labor-hour
Actual manufacturing overhead cost for the year = $123,900
Actual total direct labor = 21,000 hours
Now,
Total Estimated Manufacturing Overhead
= 94000 + ( 2 × 20000 )
= $134,000
And,
Predetremined Overhead Rate = 
or
Predetremined Overhead Rate = 
or
Predetremined Overhead Rate = $6.7 per direct labor hour
